Federal Title IV regulations (34CFR 668.22) require repayment of a portion of funds received by students unless certain conditions are met. A student who withdraws from or stops attending all courses before completing at least 60% of an enrollment period (i.e., a semester/term) must repay the unearned portion of the funds received. This rule applies to all federal grant and loan funds received as a disbursement by a student. 

The funds that are required to be returned on behalf of the student will be returned within 45 days of the withdrawal date.  The funds will be returned in this order:

1. Unsubsidized Federal Stafford Loan
2.  Subsidized Federal Stafford Loan
3. Federal PLUS Loan
4. Federal Pell Grant
5. Federal Supplemental Educational Opportunity Grant

Return to Title IV Calculation Example

Title IV Calculation Example

Amount	Type of Aid
$2,969.00	Federal Direct Unsubsidized Loan
$2,227.00	Federal Direct Subsidized Loan
$0.00	Pell Grant
$5,196.00	Total Aid Received

The student attended 28 days of the 111 days in the period, or 25.2%.  The student earned 25.2% of the aid.  Leaving 74.8% of unearned aid, of the total aid, the student is required to return $3,886.  The student has institutional charges of $2,490.77. 

Institutional aid is calculated first, ($2,490.77 * .748 = $1863).  The unearned aid must be returned based on the order or return.  All of the unearned funds will be returned from the Federal Unsubsidized Loan.

The remaining unearned funds the student is required to return.  The student is required to return $1106 in Unsubsidized Loan and $918 in Subsidized Loan.  The student must repay the loan based on the repayment schedule maintained by the lender.

Post Withdrawal Disbursement

A post-withdrawal disbursement might be required if the student did not receive all the funds they earned before withdrawing.  LSSC will automatically apply earned grant funds to the balance owed on their student account.  If the post-withdrawal disbursement includes loan funds, the student will be notified in writing with the amount of the potential disbursement.  They have 14 days to respond in writing if they choose to have the disbursement applied to their account.  If no response is received, the loan will be canceled.

If the post-withdrawal disbursement results in a credit balance on the student account, a refund will be sent via the refund method selected by the student.

Grant Overpayments

For grants, the law requires the student to return 50% of any grant funds they receive. Any amount the student is required to return is a grant overpayment. LSSC will notify a student if a grant overpayment is required.  They will have 30 days to pay the overpayment to LSSC.  If the overpayment is not paid in that 30 days, we will refer the overpayment to the Department of Education’s Debt Resolution Services.  The student will have to resolve the overpayment with the Department of Education before they can receive Title IV aid again.  

Notification to Students 

Once the Return to Title IV Funds calculation has occurred, the Financial Aid Office will notify the student of the calculation results, the returned aid, and the student account status.

Unofficial Withdrawals

Students who do not successfully complete classes with passing grades will be monitored at the end of each term for unofficial withdrawals. If it is determined that the punitive grades resulted from an unofficial withdrawal, the Return of Unearned Title IV Funds calculation will be applied to awards received. The student will be required to repay grant and loan funds as appropriate.

Initial Attendance Verification

In order to receive financial aid, students must attend the courses for which they are registered at least once during the first two weeks of any semester. Students enrolled in fully online courses must participate in an academically related activity (submit an assignment, or participate in the course discussion board) in order to satisfy initial attendance verification (PRO 3-05). If marked as not attending during this period, the student will be financially responsible for the course and Financial Aid and Veteran benefits may be decreased. Students who are reported as not attending will remain in the class.  

Award Information

Students are notified by Lakehawk email when their financial aid offer is complete.

Students are able to view their financial aid offer on myLSSC. All students expecting financial aid are encouraged to utilize myLSSC to view financial aid requirements, eligibility, and awards. The financial aid that is offered to you is subject to change for a variety of reasons. Some reasons for changes are additional aid received, outside funding reported, enrollment changes,  and alerts from the federal government regarding loans or Pell limits. The financial aid office reserves the right to adjust your aid awarded based on federal regulations.

Bookstore Authorization For Financial Aid Recipients

Bookstore authorizations allow students to use their financial aid funds to purchase books and materials in the LSSC Bookstore.  Authorizations are available to students when the total of their eligible awards exceeds the total cost of their tuition and fees.  The Bookstore Authorization dates are published in the Academic Calendar. The LSSC Bookstore is automatically notified of students who are eligible for a bookstore authorization.  Students should review their myLSSC account to determine if a bookstore authorization has been created for their use. 

After logging into myLSSC select Financial Aid on the student links page. Eligible students will have a satisfied requirement for "Bookstore Authorization". 

Students who show a credit on their account, but do not see a "bookstore authorization" on myLSSC should contact the Enrollment Service Center at 352-787-3747 or esc@lssc.edu. 

If a student is later found ineligible for financial aid, the student will be responsible for paying any charges on their account.